The move comes as part of a switches from a balanced to a specialist investment strategy and means the dismissal of Henderson Global Investors, Insight Investment and Societe Generale Asset Management.

The three had run balanced mandates, a Gloucestershire spokeswoman said. The fund was advised by bfinance.

She also said Standard Life was the first in a string of new managers to be appointed as the fund continues its revamp, but declined to elaborate further.

Standard Life was appointed because "the board thought it would be the best fit" the spokeswoman told IPE.

Standard Life said in a statement that the appointment followed "a comprehensive tendering and evaluation process involving a number of investment houses". But the spokeswoman was unable to say how many managers had been short-listed.

The fund's UK equity portfolio will be managed by Jonathan Cobb, investment director for UK equities. Chris Morawiecki, investment director for UK local authorities at the asset manager, said: "This confirms our position as a major player in this challenging and specialised arena."

He added Standard Life Investments now runs over 15 mandates totalling in excess of £1.6bn. Standard Life Investments has £95.7bn in assets under management.